Prudential Regulation Authority Rulebook

2.1

This Chapter:

1. (1) applies to a composite firm other than a pure reinsurer; and
2. (2) does not apply to a managing agent which manages one or more syndicates, all of which carry on reinsurance exclusively.

2.2

A composite firm must separately manage the activities relating to its general insurance business and the activities relating to its long-term insurance business in such a way that:

1. (1) its long-term insurance business and its general insurance business are distinct from one another;
2. (2) the interests of policyholders of contracts of long-term insurance are not prejudiced by activities relating to the firm’s general insurance business and the interests of policyholders of contracts of general insurance are not prejudiced by activities relating to the firm’s long-term insurance business; and
3. (3) profits from the activities relating to the composite firm’s long-term insurance business benefit policyholders of contracts of long-term insurance as if the composite firm was engaged only in long-term insurance business.

[Note: Art. 74(1) of the Solvency II Directive]